AUSTRALIAN STATE DEBTS.

New Zealand Herald, Volume XLVI, Issue 14146, 23 August 1909, Page 5

AUSTRALIAN STATE DEBTS.

COMMISSION OF INQUIRY. By Telegraph.— Press Association.Copyright. Melbourne, August 21. An investigation of State debts is to be made by a Royal Commission, consisting of financial experts. Federal Ministers and the Governments of the smaller States express themselves well satisfied with the arrangement made. Mr. Murray, Premier of Victoria, and Mr. Kidston, Premier of Queensland, though glad that a settlement of the financial question is to be reached, and prepared to recommend the acceptance of the Commission, consider it means a sacrifice on the part of the larger States. The Victorian Treasurer declares that it will mean that the land tax in Victoria will have to be heavier than was intended. The amounts to be paid to the various States this year, under the per capita payment, are estimated at : New South Wales £2,021,000, Victoria £1,617,000, Queensland £709,000, South Australia £521,000, West Australia £340,000, Tasmania £225,000. Compared with the returns under the Braddon clause New South- Wales loses £1,250,000, Victoria £444,000, Queensland £325,000, and West Australia £288,000. Tasmania has received a small gain. The Sydney Morning Herald says the result of tho Premiers' Conference will be received with mingled feelings. The Commonwealth may congratulate itself on coming out on the safe side, but it is pretty clear that Commonwealth finance is going to- be a big thing for many years to come, and the present arrangement is only one step toward its solution. The Daily Telegraph declares that if the States agree to the proposed per capita contribution, Mr. Deakin will have scored remarkably, and State Treasurers will be placed in a worse position than under any. scheme yet put forward. Mr. G. H. Reid considers the main effect will be to compel the Commonwealth and State Governments to observe the principles of careful finance.